The Congress party is grappling with heightened financial woes as it faces a Rs 1,700 crore Income Tax notice ahead of the 2024 Lok Sabha elections. This notice, inclusive of penalties and interest, spans assessment years from 2017-18 to 2020-21. The move comes subsequent to the Delhi High Court’s dismissal of the party’s petition contesting reassessment proceedings across four consecutive assessment years.
Party spokespersons revealed the issuance of the fresh demand, emphasizing the eleventh-hour distress for the party amidst the crucial national elections. Vivek Tankha, a prominent lawyer and Rajya Sabha MP representing Congress, confirmed receipt of the notices and asserted the party’s intent to pursue legal avenues. Tankha criticized the Income Tax Department’s actions as undemocratic and unreasonable, particularly lamenting the absence of essential accompanying documents with the notice.
Previously, the tax department had already recovered Rs 135 crore from Congress’s Delhi bank accounts concerning tax arrears and interests for the assessment year 2018-19, following the party’s denial of exemption due to non-compliance with prescribed conditions. The Delhi High Court, in its recent ruling, declined to intervene in the reassessment proceedings for the years 2017-18 to 2020-21, citing its prior decision’s relevance and the substantial evidence warranting further scrutiny.
During raids on various entities, including those linked to Megha Engineering and aides of former Madhya Pradesh Chief Minister Kamal Nath, the tax department uncovered substantial cash transactions exceeding Rs 520 crore, deemed compelling by the court. Additionally, cash transactions involving Congress during searches on entities purportedly associated with Karnataka Deputy Chief Minister D K Shivakumar and a Surat-based company were highlighted by the tax department, leading to allegations of violations impeding the party’s tax exemption eligibility.
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